The Quadrillion Dollar Bridge

Unlock the secrets to successful retirement planning with insights that will revolutionize the way we make financial decisions

In The Quadrillion Dollar Bridge: Retirement Behaviour, author Josef Pilger delves into the complex landscape of retirement , systems, decisions, planning, behaviours and outcome expectations providing vital guidance for policymakers, individuals, retirement and financial services providers. This book addresses the complex challenges consumers, policymakers and providers face today, from navigating investments to making informed decisions that affect the retirement lifestyle for millions. With Pilger's extensive experience in the global retirement and financial services sector, he offers practical solutions designed to empower readers for a more secure financial future.

Packed with research-based insights and actionable strategies, the book dissects the evolving retirement landscape—highlighting how you can better navigate the shift from defined benefits to individualized plans and what he calls “Retirement 2.0”. Readers will learn how to make informed choices that improve their retirement systems, delivery and outcomes, ensuring they achieve lasting peace of mind.

Inside the book:

• Discover how understanding behavioural psychology can reshape investment strategies
• Learn best practices to maximize retirement savings, systems and outcomes
• Explore the interconnectedness of health, wealth, longevity and career decisions in planning for the Golden Years

The Quadrillion Dollar Bridge: Retirement Behaviour is a must-read for policymakers, financial services providers, pension fund professionals, and financial advisors eager to enhance their clients' retirement planning experiences. Empower yourself and your clients today with the knowledge needed to thrive in a complicated financial landscape.

Foreword xi

Preface xiii

Charts xvii

Section A Framing Context 1

Retirement System Objectives: Purpose and Cultural Framing Expectations 3

Problem: What Problem? The Governance and Fiduciary Duty 8

Retirement System Parameters 11

Section B Retirement and Financial Well-Being Ecosystem 23

The Financial Well-Being Ecosystem 23

Retirement Decision Map 26

The Unavoidable Statistical Section 28

The Retirement Memories Map 31

Why Are Retirement Decisions So Hard? 34

Financial Literacy and Financial Advice as Silver Bullets? 38

What Can We Learn from Human Evolution? 43

Intergenerational Wealth Transfer 56

Behavioural Economics – Progress at Last? 57

Retirement Success 59

Financial Planning Success 65

Section C Transform Retirement 2.0 – Defining the Crucial Challenge(s) 67

Laying the Foundations 67

The New Brand of Retirement 2.0 71

The Foundation of Success in Retirement 2.0 74

Transform: How Can We See What Others Do Not? 78

A Policymakers’ Balanced Scorecard for Retirement 2.0 80

Longevity’s Impact on Governments 84

Section D Transform Retirement 2.0 – Breaking Down the Challenge(s) 103

Break Down the Challenge and Challenge Statement 103

Compare Stakeholders’ Perspectives and Wants 113

Section E Transform Retirement 2.0 – Search within the Sector 143

Searching for Best Practices from Australia 144

Searching for Best Practices from the Netherlands 145

Searching for Best Practices from Denmark 146

Searching for Best Practices from Hong Kong 147

Searching for Best Practices from Malaysia 148

Searching for Best Practices from the United States 149

Searching for Best Practices from Canada 151

Searching for Best Practices from Chile 153

Searching for Best Practices from India 154

Searching for Financial Advice Best Practices in the United Kingdom and Australia 155

Selected Key Lessons from within the Global Retirement Ecosystem 163

Section F Transform Retirement 2.0 – Search Outside of the Sector 167

The Search for Better Attraction and Engagement 168

The Search for More Learning about Customer Attraction at Scale 172

Search for Financial Security-Centric Retirement Advice Lessons 174

Search for Better Enablement and Decision for Retirement Lessons 180

Search for Lessons for a Better Ecosystem and a ‘Fulfilled Life’ 185

Learning about the Illusion of Validity 187

Search for Better Government and Policymaker Interventions 188

Lessons from the Global COVID Vaccine Journey 189

Lessons from the Implementation of Obama Care 192

Lessons from the Kingdom of Saudi Arabia’s Vision 2030 Journey 193

Section G Transform Retirement 2.0 – The Options Map 197

Developing the Options Map Pragmatically 197

Shift 1: From Retirement 1.0 to 2.0 and ‘Fulfilled Life’ Transformation 200

Shift 2: From Incremental to Transformative Outcome Architecture 208

Shift 3: From Process and Choice to Saver Outcome Architecture 210

Shift 4: From Process to Outcome Governance 215

Shift 5: From Process and Product to Value-Chain Architecture 220

Shift 6: From Financial Planning to Advice Outcome Architecture 228

The Political Test: The $1 Quadrillion Prize of Value Generation 247

The $1 Quadrillion Prize Journey 248

Section H What Do the Six Shifts Mean More for the Golden Years? 251

Framing the Conversation 251

Framing Success 254

The Australian Retirement System 257

The German Retirement System 267

The Dutch Retirement System 272

The UK Private Retirement System 273

The US Private Retirement System 276

Section I International Leaders’ Thinking 285

Introduction 285

Andrew Evans, Group CEO, Smart Pensions 285

Nikki Pirrello, President and Publisher, Pensions & Investments 286

John Mitchem, Principal, JM3 Projects New York and Co-Founder of Jasper Forum, a Global Retirement Finance Discussion Group 289

Section J Conclusion 291

We Need to Put Humans in the Centre – Finally 291

One Key Aspect Remains to Manage Transformative Savers’ Outcome Expectations 293

Suggestions for Future Work 293

Notes 295

Index 303

JOSEF PILGER is an independent consultant and speaker with decades of experience in the global pension and retirement sector. He has worked with hundreds of boards, CEOs, and executives in leading organisations across more than 30 countries and has extensive experience working as a commercial and NFP board member.

In The Quadrillion Dollar Bridge: Closing the Retirement Funding Gap by Understanding How Humans Make Decisions, pension and retirement expert and author Josef Pilger guides you through the complex landscape of retirement, including its systems, decisions, planning, behaviours, and outcome expectations, providing vital guidance for policymakers, individuals, and retirement and financial services providers.

This book tackles the complicated challenges awaiting consumers, policymakers, and service providers as they seek to navigate an increasingly complex and volatile retirement landscape. It walks you through how to navigate investment decisions and how to make informed decisions that have the potential to affect the retirement lifestyle of millions of people.

Pilger draws on his extensive experience in the global retirement and financial services sector as he provides practical solutions designed to empower readers deserving of a more secure financial future.

The Quadrillion Dollar Bridge is packed with research-based insights and actionable strategies that dissect the evolving retirement landscape. It highlights how you can better navigate the shift from the defined benefit plans that characterized the retirements of previous generations to what the author calls “Retirement 2.0” a landscape characterized by defined contribution plans and self-serve, bespoke retirement options.

You’ll learn how to make informed choices that improve your retirement systems, delivery, and outcomes as you achieve peace of mind knowing that your future is soundly planned. You’ll also discover how behavioural psychology can – and should – reshape your approach to investment strategy, and how to implement best practices to maximize your retirement savings, systems, and outcomes.

An essential resource for anyone wishing to explore the intersection of health, wealth, longevity, and career decision-making as they plan for their golden years, The Quadrillion Dollar Bridge is also an invaluable book for policymakers, financial services providers, pension fund professionals, and financial advisors.

Praise for THE QUADRILLION DOLLAR BRIDGE

“This book shows alternative solutions for retirement provision that could meet the growing challenges in Germany. It sheds light on international approaches and calls for bolder decisions in capital market orientation before the pressure to act increases further.”
—MARTIN STENGER, Head of Sales at Franklin Templeton Germany

“Josef Pilger illuminates the ‘why’ behind our retirement decisions at every level, from governments to individuals, and how to ensure we make the right choices. This is essential reading for a secure future.”
—JAMIE FIVEASH, CEO of Smart Pension UK

“Quadrillion Dollar Bridge offers an unparalleled historical and social analysis of retirement income, urging us to embrace an intergenerational approach to financial security throughout life to promote stability in later years. Essential reading for actuaries, financial planners, policymakers, futurists, and individuals alike, this work challenges us all to consider transformative changes that will shape our collective future.”
—ANNE-MARIE ELIAS, Co-Founder PrimeLife Partners

“This is by far the most thorough analysis I have ever seen of the issues of retirement systems around the world. The research is stunning in its breadth and depth. Josef raises numerous questions, aiming to reframe and stimulate debate and reflection.”
—DON EZRA, Former Co-Chairman of Global Consulting for Russell Investments

The Quadrillion Dollar Bridge: Closing the Retirement Funding Gap by Understanding How Humans Make Decisions is a practical and insightful new discussion of how to navigate the increasingly complex and unpredictable landscape of retirement, including its systems, decisions, planning, behaviours, outcomes, and expectations. In the book, retirement and pension expert and author Josef Pilger walks you through the challenges lying in wait for consumers, policymakers, and financial and retirement services providers and how you can best address them.